Less than half of TMT sector C-suite are very confident they can manage trends, despite optimistic growth outlook

As a sector that goes through constant innovation and evolution, TMT leaders remain optimistic about growth as 97% confirm a positive growth outlook for their business, according to the firm’s latest C-suite barometer. 

After transforming company IT and technology (60%), international expansion is the next strategic priority at the top of the agenda for TMT executives. Leaders in this sector recognise the advantages of international expansion for their business as 92% of TMT organisations plan to expand operations to at least one new country over the next five years.  

Notably, this sector has the largest appetite for international expansion when compared to any other sector studied (financial services 89%; manufacturing and distribution 84%; life sciences and pharma 80%; and retail and consumer 80%).  

The United States, UK, China, Canada and Germany are the top target destinations but there are many considerations impacting leaders’ decisions around the best locations to expand – even aside from global tariffs imposed. Understanding local regulations (53%), securing a local workforce (49%) and localising products to new markets (45%) are reported as the biggest challenges. 

The rationale behind this commitment to expansion is likely from the scale at which increased competition has risen in importance, and its impact on this sector and all businesses around the world. It is the second biggest influencing factor expected to hold back growth and the second top trend most likely to have the biggest impact on businesses.  

Guillaume Devaux, Partner and Head of Technology, Media & Telecommunications, comments: “Despite uncertainties, growth projections related to IT transformation needs and the increased use of emerging technologies such as artificial intelligence (AI) remain optimistic. In an era where increased competition is becoming more significant to businesses and their leaders than ever before, a sector like TMT that evolves at such speed requires continual investment for growth and expansion or players risk being left behind.” 

TMT sector leaders are more likely than others around the world to report having strategies for technology transformation (87%), generative AI (78%) and discriminative AI (59%), and higher overall usages of AI globally. They also put immense value on AI regulation as 80% of executives in the sector see it as essential or very important compared to the global average (75%). 

While there’s a seven-point fall this year in the proportion of TMT executives expressing major ethical concerns with AI, there’s a three-point rise in the proportion of leaders confirming greater regulation of AI is essential. 

Devaux adds: “After having to comply with GDPR regulations, companies working on artificial intelligence must anticipate all changes from the EU Artificial Intelligence Act coming fully into force by the European Union by August 2026. They may have less ethical concerns this year because they are better prepared for these regulatory changes however, even the most mature companies are still anticipating them today in their developments.Despite recent events that may have now dampened optimism, the sector must still confront escalating competition and tightening regulations, especially as this situation is occurring in an environment where the war for talent continues to be a trending issue.” 

Like the global average, TMT sector leaders are experiencing more difficulty hiring graduate/early career (31%) than more senior positions this year. They also report attracting (40%) and targeting (38%) the right candidates as well as leveraging the power of AI in recruitment (34%) as their main hiring challenges. 

These could be difficult to overcome if leaders aren’t open to new ways of working. Despite being in a sector focused on digital advancements and developing the tools to enable remote working, of those who do prioritise full flexibility, only 42% plan to reduce the number of days people are in the office compared to 46% globally. 

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About the study     

The C-suite barometer: outlook 2025 examines the views, challenges, and strategic priorities of today’s C-suite leaders around the world. This independent research was conducted between 28 September and 23 October 2024 and captures the views of 1,706 C-suite leaders at for-profit organisations with annual revenues of over $1 million across more than 35 countries. Insights from 318 participants in technology, telecommunications, media and communications were considered for the development of the barometer’s TMT sector report. 

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Rosa Mejia Banks, Group PR and Content Officer  
Rosa.Mejia-Banks@mazars.co.uk / +44 (0) 20 7063 4934